Mastering Credit Card Rewards: An Insider's Guide to Effective Redemption Strategies 

Having a card that generates financial rewards – whether in the form of miles or even cashback – is one of the best ways to make the most of your money, even if only little by little or if you do not have many expenses concentrated on your credit card.

But just as each card generates points in a specific way, it is sometimes more worthwhile to redeem points in one way than another. And how do you know that?

How do we know how to best use the points we generate in a more efficient and, above all, more financially rewarding way?

Today's text teaches you how to maximize your credit card rewards according to your spending and financial profile. 

So, keep reading to find out more about it!

Begin with a Balance Check: Assessing Your Points, Cashback, or Miles

First, you must know exactly how your card releases its financial rewards. This is already stated in the hiring proposal when we read the offer.

If you need to know your card profile, go back to the bank's website and the specific promotion page. This way, you will come ahead when you have to change your balance, as you will know exactly what product your card is intended for.

To find out your points balance, it is essential to check your card, specifically through your app or account. Sometimes, if it's a card linked to a store, you visit it in person.

Some banks or issuers may make your points balance visible on your first access. But others will take a bit of work reading and navigating their menus to find the way to check your points balance.

After this preliminary consultation, studying how you want to change your balance is possible.

1 – Convert Your Balance into Cash Rewards: Maximizing Your Credit Card Benefits

This option is viable if you want to pay part of your monthly bill using your card points. However, you need to check whether your card offers this option to exchange your balance for cash rewards.

If you offer the option, checking how the card demonstrates it is essential. In some cases, you will find “convert to money,” in others, “equivalent to money.”

In cases like Apple Card, the option is more straightforward and is available in “daily cash.”

The most common way to redeem your balance is to exchange cash rewards. Today, most credit cards offer this option when offering points or cashback.

Another way of using the balance that some cards provide is the possibility of withdrawing money directly from ATMs.

No less commonly, it also sends a check with its value converted into cash, as occurs today with Wells Fargo Active Cash.

2 – Transform Your Balance into Credits for Product Purchases

This is the most common option for redeeming credits generated on cards. Generally, the bank's application has a system of aggregated stores in which the score is a payment method.

There are cards, such as Prime Visa, that are focused precisely on a system of converting points for products directly on the Amazon website.

There are, however, options to redeem points directly at store cashiers, such as those associated with brands like Costco, through your Costco Anywhere Visa® card, created in partnership with Citi.

In the specific case of this card, it is enough for it to be presented at the physical store cashier to have access to the points balance to convert into discounts when purchasing.

Therefore, it is interesting to check the list of partners for each card and see if the bank's partners are brands that are already present in your daily life. This way, you optimize your consumption even further.

3 – Redeem Your Score for Travel Credits

A trendy way to exchange credit scores generated through credit card use and payment is for discounts when planning your trips.

Banks like Citi, American Express, and Chase have “Travel” programs. When customers use the points generated by cards from these banks in their travel planning programs, they get more discounts.

This is because, when used directly in native programs of the bank issuing the card's score, there is no loss in conversion, as when transferring the balance directly to an airline, even if it is a partner.

This same dynamic also works for cards with frequent flyer programs. The only difference is that in this type of case, the miles balance can be used directly at the airline that issued the card, as, for example, in the case of Delta SkyMiles® Gold American Express.

This can be an excellent option for frequent leisure travelers and those who need to travel frequently for work.

In this case, we suggest reviewing the card's list of airline partners, as some may have exclusive contracts and not allow you to redeem points on any airline.

4 – Rescue Points and Exchange for Gift Cards

Gift cards are incredible ways for banks to exchange points, especially because you can usually convert the balance at the bank's partner store or your internal store.

Since the conversion is direct, in this case, you don't need to do a lot of math to determine whether it's worth it.

Generally, redemption values vary between US$3 and US$500; you can use them however you wish.

However, it is always worth keeping an eye on the conversion of points and checking that the product on the partner's website is not much cheaper than it would be if purchased with points from your credit card.

Maximize Your Points Journey by Defining Your Goals for Optimal Rewards

Before taking any step regarding your points balance and how to use it, it is essential that you analyze your real objectives.

If you want to take more trips, look for a card with a robust miles program. If you want to pay off the value of your bill whenever possible, look for a card with an excellent cashback program.

With this, you increase the efficiency of your money and, above all, ensure that your dreams are always closer to the expected and planned realization.